President Bola Tinubu on Monday announced the plans of his administration to tackle the biting economic meltdown Nigerians are experiencing following the removal of fuel subsidies and arbitrage in the foreign exchange market.
The two policies have led to a rise in goods, commodities and services across the country as average Nigerians are struggling to cope with living.
However, the President rolled out some relief packages in a broadcast on Monday, a proposal that looked comprehensive even though there are doubts as to how he would generate enough funds to bankroll the lofty dreams.
Here are the highlights of the promises the President made to Nigerians in his Monday broadcast:
1. N100billion for 3,000 gas-powered buses
Tinubu said one of the immediate responses of his administration to the hardship occasioned by the fuel subsidy removal is the investment of a whopping N100 billion in the acquisition of 3,000 units of 20-seater CNG-fuelled buses between now and March 2024.
The buses, he said, would be shared to major transportation companies in the states, using the intensity of travel per capital, adding that participating transport companies will be able to access credit under this facility at 9 per cent per annum with 60 months repayment period.
2. 75 billion for manufacturers
Tinubu said his government would spend N75 billion between July 2023 and March 2024 to strengthen the manufacturing sector, increase its capacity to expand and create good-paying jobs.
“Our objective is to fund 75 enterprises with great potential to kick-start sustainable economic growth, accelerate structural transformation and improve productivity.
“Each of the 75 manufacturing enterprises will be able to access N1billion credit at nine per cent per annum with a maximum of 60 months repayment for long-term loans and 12 months for working capital.”
3. Health, and infrastructure upgrade
He added that he had approved Infrastructure Support Fund for the States to ensure that deficits in critical infrastructure including health are tackled.
“It is in light of this that I approved the Infrastructure Support Fund for the States. This new Infrastructure Fund will enable States to intervene and invest in critical areas and bring relief to many of the pain points as well as revamp our decaying healthcare and educational Infrastructure.
“The fund will also bring improvements to rural access roads to ease evacuation of farm produce to markets. With the fund, our states will become more competitive and on a stronger financial footing to deliver economic prosperity to Nigerians.
4. New minimum wage
One of the main reasons organised labour is hell-bent on embarking on nationwide protest is that the government is not committed to increasing their minimum wage but Tinubu said the workers would get a raise soon.
Tinubu stated, ‘’In the same vein, we are also working in collaboration with the labour unions to introduce a new national minimum wage for workers. I want to tell our workers this: your salary review is coming.
‘’Once we agree on the new minimum wage and general upward review, we will make budget provision for it for immediate implementation.’’
5. N200b to cultivate maize rice and cassava
The President said his administration plans to support the cultivation of 500,000 hectares of farmland and all-year-round farming practice
He added that N200bn out of the N500bn approved by the National Assembly will be disbursed as follows:
“Our administration will invest N50bn each to cultivate 150,000 hectares of rice and maize. N50bn each will also be earmarked to cultivate 100,000 hectares of wheat and cassava.
“This expansive agricultural programme will be implemented targeting small-holder farmers and leveraging large-scale private sector players in the agric business with a strong performance record.
“In this regard, the expertise of Development Finance Institutions, commercial banks and microfinance banks will be tapped into to develop a viable and appropriate transaction structure for all stakeholders.’’
6. 225, 000 metric tonnes of fertilisers, seedlings
“We are also providing 225,000 metric tonnes of fertilizer, seedlings and other inputs to farmers who are committed to our food security agenda,” he added.
7. N200,000 metric tonnes of grains for households
The government will ensure staple foods are available and affordable, the President said.
“In the short and immediate terms, we will ensure staple foods are available and affordable. To this end, I have ordered the release of 200,000 Metric Tonnes of grains from strategic reserves to households across the 36 states and FCT to moderate prices
8. N75 billion for MSMEs
He said his administration recognises the importance of micro, small and medium-sized enterprises and the informal sector as drivers of growth and is committing huge investment into the ‘important sector’.
“We will fund 100,000 MSMEs and start-ups with N75bn. Under this scheme, each enterprise promoter will be able to get between N500,000 to N1million at 9 per cent interest per annum and a repayment period of 36 months,’’ he said.
9. N50billion for one million nano businesses
He also promised to commit N50bn to lift traders and market people in the nano enterprise.
‘’W will spend N50bn on Conditional Grant to one million nano businesses between now and March 2024. Our target is to give N50,000 each to 1,300 nano business owners in each of the 774 local governments across the country.
‘’Ultimately, this programme will further drive financial inclusion by onboarding beneficiaries into the formal banking system.
10. Commitment to education, student loans
He said he is committed to making education affordable to all Nigerians and will make sure that students who desire higher education get access to loans.
“We shall fulfil our promise to make education more affordable to all and provide loans to higher education students who may need them. No Nigerian student will have to abandon his or her education because of lack of money. Our commitment is to promote the greatest good for the greatest number of our people. On this principle, we shall never falter.
11. Intervention in the exchange rate to bring down petrol prices
The prices of fuel have been going up especially due to the exchange rate but Tinubu promised to encourage the government’s intervention in that regard.
“We are also monitoring the effects of the exchange rate and inflation on gasoline prices. If and when necessary, we will intervene,” he said.
